The outstanding liabilities rose 62.78 percent during the four-year period, sad the YSRCP government, which was in power during this time.
According to the RBI report "State finances – A study of budgets", the Andhra Pradesh government's debt was around ₹4.42 lakh crore, while the Opposition said it was around ₹9.17 lakh crore. (Representational image/Creative Commons)
Amidst the continuous onslaught by the Opposition parties about the state’s fiscal position, Special Secretary to Chief Minister (Finance and Economic Affairs) Duvvuri Krishna said the debt of Andhra Pradesh grew at a slower pace in the last four years than before.
This, he said, was despite periods of unprecedented difficulties in the last three tears in light of the cyclical economic slowdown followed by the outbreak of the Covid-19 pandemic.
He also condemned the Opposition’s claim that the liabilities of the state were ₹9,16,696 crore.
According to the RBI report “State finances – A study of budgets”, the Andhra Pradesh government’s debt is ₹4,42,442 crore.
The RBI report contains the state-wise details of outstanding liabilities for the past 15 years.
The RBI takes into consideration the audited numbers released by the Comptroller and Auditor General (CAG) and, after making some minor adjustments to better reflect the actual position, arrives at the figures for state-wise outstanding liabilities.
“The outstanding liabilities increased 62.78 percent during the four-year period of the YSRCP government,” said Duvvuri Krishna.
“Further, what is to be borne in mind is that, during the last three years, we witnessed periods of unprecedented difficulties in the light of the cyclical economic slowdown followed by the outbreak of the Covid-19 pandemic,” he noted.
“Debts with respect to many governments reached very high levels. Despite that, the debt of the state of Andhra Pradesh grew at a slower pace,” he said.
He added that the opening balance of the state government’s liabilities at the time of its formation was ₹1,13,797 crore, as per the RBI report — 58 percent of the outstanding liabilities of the combined state.
This, he said, increased to ₹2,71,797.56 crore during the time of the TDP government — which meant the debt more than doubled in that period.
“Compared to this, the debt has not doubled during the first four years of the present government, as alleged. It has only increased by 62.78 percent,” said Krishna.
“This means the closing balance of liabilities by the end of four years of the present government is only 1.63 times the opening balance of liabilities at the time of the formation of the present government. As alleged by the Opposition, if the liabilities were to have doubled during the period, the borrowing during the final year of the present government — FY 2023-24 — should be to the tune of ₹1,01,150 crore and this is not possible as this translates to nearly 7.5 percent of the GSDP, when the borrowing permit by the Central Government is only 3.5 percent of the GSDP,” he added.
Krishna also said that contrary to what was being projected by the Opposition parties and their affiliated media, the fiscal position of the state had seen considerable improvement owing to the policies of the current government.
Several kinds of analyses suggest this position, he added.
Regarding pending bills, Krishna said that in view of the emphasis on utmost transparency, the finance minister on the floor of the House declared that on 19 September, 2022, outstanding bills amounted to ₹21,673 crore.
The finance minister also confirmed that on 31 March, 2019, the pending bills were to the tune of ₹40,172 crore.
“Therefore, when the present government was formed, the outstanding bills were almost double what they currently are,” said Krishna.
“Despite the government making a clear declaration on the quantum of pending bills, it was highly objectionable that the TDP and affiliated media were repeatedly alleging that the state government was concealing information,” he said.
“Despite the clarity given by the state government, the TDP and affiliated media continue to spread the misinformation that the pending bills are to the tune of Rs 1.85 lakh crore,” he added.
Krishna also said that with respect to guaranteed loans of state PSUs in accordance with Article 293(1) of the Constitution, the state government had provided guarantees within the limits stipulated by the state legislature.
The Andhra Pradesh Fiscal Responsibility and Budget Management Act of 2005 stipulates the limits within which the state government can provide guarantees.
Krishna further said that as per the details provided in Volume 5 of the state budget 2021-22, the outstanding loans availed on the basis of state government guarantees as on 31 December, 2021, amounted to ₹1,17,730 crore.
During the calendar year 2022, very few loans were availed by PSUs with state government guarantees. In fact, some of the loans were also discharged owing to them maturing.
“Therefore, the increase in outstanding guarantees would be to the tune of only ₹5,000-10,000 crore, taking the figure to nearly ₹1.27 lakh crore. The exact figures would be known within the course of the next month at the time of budget presentation for the financial year 2023-24,” said Krishna.
“If the TDP and affiliated media are alleging that the state-guaranteed loans of PSUs have increased to ₹1.78 lakh crore, they have to show details of such debt or stop this misinformation campaign,” he added.
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